Don't Get Lulled Into Complacency

Complacency still dominates our markets. On the second chart below, I have again shown the volatility index (VIX), since it continues at levels not seen in over five years. Look back at history and note that low fear levels coincide with market highs. So there continues to be a warning here to not be carried away by the bullishness of the crowd. There are times when one has to be a contrarian, and I see this as one of them. 

Yesterday was the eighth consecutive session in which we have had an extremely tight trading range, indicating that the market has encountered a very difficult resistance level. It is the same area touched last year, and not much below the all-time highs. That is posing a major blockage to further upside progress. Be ready to go short on any sign of weakness out of this area....275 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.